RESOLUTION NO. 5040-2021
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF BARSTOW APPROVING A DEVELOPMENT
AGREEMENT BY AND BETWEEN THE CITY OF BARSTOW
AND MILESTONE HOUSING, LLC FOR THE DEVLOPMENT
OF CERTAIN REAL PROPERTY LOCATED AT 555 SOUTH
7TH AVENUE
WHEREAS, the City and Milestone Housing, LLC, a developer, are submitting a grant application to Strategic Growth Council to obtain an Affordable Housing and Sustainable Communities (AHS) grant to develop certain real property, divided into tour parcels (Parcels 1, 2, 3, and 4) and owned by the City at 555 S. 7th Avenue ('Site") into affordable housing and to create a new transit station for Victor Valley Transit Authority as well as improving vital areas such as Main Street; and WHEREAS, under its constitutional police power, the City has the authority to regulate use of land and to create specific plans for the development of a residential and transit system-oriented projects; and
WHEREAS, the City's procedures for approving and reviewing development agreements are set forth in Chapter 19.46 of the Barstow Municipal Code; and WHEREAS, the City desires to enter into a Development Agreement with Milestone Housing, LLC to allow for the construction of affordable housing in the City at the Site.
WHEREAS, the Development Agreement consists of the Parcel 1 Project, an 81- unit affordable housing development to be on Parcel 1 of the Site, and the Additional Parcels Project, consisting of either (i) a 81 unit transit oriented affordable housing development, which shall include supportive housing for the formerly homeless or senior housing, (ii) a mixed-use project comprised of a transit oriented affordable housing development and some retail, or (iii) a transit oriented housing development that includes a percentage of market rate apartments, or (iv) a mixed-use project of retail and market rate housing, to be developed on Parcels 2,3, and 4 of the Site by the Developer;
NOW, THEREFORE BE IT RESOLVED, that the City Council of the City of Barstow does hereby approves the Development Agreement between the City of Barstow and Milestone Housing, LLC, attached as Exhibit A, based on the following findings:
1. The Development Agreement is consistent with the goals and policies of the City's General plan.
City Council Resolution No. 5040-2021
2. The Development Agreement is consistent with the goals and policies of the Seventh Avenue Specific Plan.
3. The execution of the Development Agreement is in the best interest of the public health, safety and general welfare of the City and its residents and constitutes a present exercise of the City's police power.
4. The City's approval of this Development Agreement is exempt from review under the California Environmental Quality Act (CEQA) as an agreement facilitating land uses consistent with the General Plan and Seventh Avenue Specific Plan, namely affordable housing; under CEQA Guidelines Section 15183, Projects Consistent with a Community Plan, General Plan, or Zoning as the agreement contemplates only land uses consistent with the existing Seventh Avenue Specific Plan and related zoning and General Plan land use designations; and under Section 15061(b)(3), which states that an activity is covered by the common sense exemption that CEQA only applies to projects that have the potential for causing a significant effect on the environment, as further specified by the City of Barstow's procedures for implementing CEQA.
5. The City shall retain the authority to determine the most appropriate form of environmental review for the Additional Parcels Project.
6. The City's entering into the Development Agreement in no way precludes the City's consideration of alternatives to the proposed Parcel 1 Project and Additional Parcels Project, including a no-action alternative whereby all proposed development would be denied, or approval of alternative proposals that entail greater or lesser density or different land uses.
7. The City is not obligated to approve any particular proposed development or course of action for the Additional Parcels Project.
BE IT FURTHER RESOLVED, that by approval of this Development Agreement, the City grants Milestone Housing LLC the right to enter into a 99-year Ground Lease for Parcel 1 to construct deed-restricted affordable housing units, subject to receipt of the AHSC Grant for the 2021 and 2022 grant cycle, and at the City's sole discretion, for the period of the 2023 grant cycle.
BE IT FURTHER RESOLVED, that the City Manager is authorized to take all steps necessary to execute and implement the Development Agreement.
City Council Resolution No. 5040-2021
PASSED, APPROVED and ADOPTED this 17'h day of May, 2021 ATTEST:
char SEPT. 30, 1947
Andrea Flores, City Clerk
I, Andrea Flores, City Clerk of the City of Barstow and Ex-Officio Clerk of the Council, DO HEREBY CERTIFY UNDER PENALTY OF PERJURY, that the foregoing is a true and correct copy of Resolution No. 5040-2021 of said City which was adopted at a regular meeting of said Council held the 17th day of May 2021 by the following vote:
AYES: COUNCIL MEMBERS NOBLE, KRUSE, SILVA, ROSE AND
MAYOR COURTNEY
NOES: NONE
ABSTAIN: NONE
ABSENT: NONE
Glas
Andrea Flores, City Clerk
City Council Resolution No. 5040-2021
City of Barstow Approved
@BARSTOW California May 17, 2021 6:00 PM
Council Agenda Item
4647
Development Agreement Seventh Avenue and Old Hospital Parcels with Milestone Information
Department: Economic Sponsors:
Development
Category: Contract
Attachments
Printout
Milestone DA Approval Resolution
Exhibit "A" Affordable Housing Project Agreement - Milestone Barstow Exhibit "A-1" and "A-2" PM 20276 and Legal Description of Site Exhibit "B" Schedule of Performance
Exhibit "C" Scope of Development
Exhibit "D" Form of Ground Lease - Milestone Barstow
City of Barstow Resolution for Application to AHSC
(Upload New Attachment)
Executive Summary
This project is part of a continuation of efforts to revitalize downtown Barstow. This project is known at Relmagine Barstow.
Over the last two years, staff has worked, alongside a technical assistance team, on an application for then Affordable Housing Sustainable Communities ("AHS") grant. The City will partner with a developer to construct affordable housing units on City-owned property. A Request for Qualifications process in 2020 sulted in four submissions for development partners. These applications were vetted through a scorir ocess by City staff, which resulted in the selection of Milestone Housing LLC. Milestone Housing LLC wa The Development Agreement (Exhibit "A") is the formal written agreement for a 99-year lease between the City and Milestone Housing LLC for the site located at 555 S. 7th Avenue. The site is divided into four parcels on which development is allowed, subject to the conditions of the Development Agreement. The first part of the Development Agreement, being approved by this Resolution, grants Milestone Housing LLC a ground lease on Parcel 1, a 3.3 acre plot, upon which to construct an affordable housing project with at least 81 deed-restricted units rented at San Bernardino County moderate-income or lower rates (i.e. 80% of Average Median Income- AMI in San Bernardino County or less) for the term of this Agreement for at least 55 years from the commencement date of the Ground Lease. The option to construct affordable housing is conditioned on applying to and receiving an award for the AHSC grant in partnership with the City of Barstow.
Discussion
An executed Development Agreement ("DA") allows for Milestone Housing LLC to lease 3.3 acres from the City in order to build affordable housing.
An overview of the key terms included within the proposed DA with the Developer includes the following components:
Establishes the Contract Period between the City and Developer Milestone Housing LLC may apply for the 2021 and 2022 AHSC grant. If, at that point, the grant has not been awarded to the City of Barstow, there is an option for a third year of eligibility for 2023 AHSC grant application cycle where the City of Barstow has the sole discretion to choose if they want to keep Milestone Housing LLC on the project for a 3rd year.
• If AHSC grant is awarded, Milestone receives a 99-year lease on Parcel 1 of Parcel Map 20276 Exhibit "D" to construct deed-restricted affordable housing units.
Sets out a time period that Milestone Housing LLC is allowed to exercise options for parcels 2, 3 and 4 of Parcel Map 20276.
The DA is consistent with the objectives, policies, general land uses, and programs specified in the General Plan and the Seventh Avenue Specific Plan. The DA further complies with the zoning for the real property in question and is consistent with and complies with the Subdivision Map Act.
ENVIRONMENTAL DETERMINATION
The Parcel 1 Project is a land use consistent with the General Plan and Seventh Avenue Specific Plan, namely affordable housing, and is thus considered exempt under CEQA Guidelines Section 15183, Projects Consistent with a Community Plan, General Plan, or Zoning. For the Additional Parcels Project, if the exemption under CEQA Guidelines Section 15183, Projects Consistent with a Community Plan, General Plan, or Zoning is not legally permissible in the City's sole judgment, the City and Developer have agreed to meet and confer as to the most appropriate form of environmental review of such approval. The City will retain the authority to determine the most appropriate form of environmental review.
Recommended Action
Staff recommends that the City Council adopt a Resolution No. 5040-2021 to approve the proposed Development Agreement with the Developer Milestone Housing LLC (Exhibit "A") and authorize the City Manager to execute the agreement related to the 555 S. 7th Avenue Old Hospital site. Staff further recommends that the City Council adopt a Resolution No. 5041-2021 authorizing submission of an application for the Affordable Housing and Sustainable Communities Program grant. The City's proposed approval of this Development Agreement is exempt from review under the California Environmental Quality Act as an agreement facilitating land uses consistent with the General Plan and Seventh Avenue Specific Plan, including affordable housing.
Meeting History
May 17, 2021 6:00 PM Video City Joint Special & Draft
Council CC/Successor/BFPD
ECONOMIC DEVELOPMENT ADMINISTRATOR AMANDA HERNANDEZ
- Stated this was a continuation on the affordable housing and sustainable communities (AHSC). - Noted the application dead line was June 8th and this was some of the final clean up and grant preparation application. - Explained the location will be at the old Barstow Community Hospital. - Gave a background on the project and presented a draft site plan.
CONSULTING PLANNER REBECCA THORPE
- Stated the voting items on the agenda.
COUNCIL MEMBER SILVA
- Asked clarification on who will select title services.
BUILDING OFFICIAL CHRIS HELDRETH
- Clarified the city will retain title.
- Noted the property will be only lease, there will be no escrow company because there is no title transferring there only be a lease agreement.
ASSISTANT CITY ATTORNEY NIKHIL DAMLE
- Noted there is already a lease agreement for 99 years to Milestone for the construction of the affordable housing project.
COUNCIL MEMBER KRUSE
- Clarified they are going to pay for parcel one the fair market value.
ASSISTANT CITY ATTORNEY NIKHIL DAMLE
- Stated that regarding the 55 year deed restriction means those units cannot be rented at market rate for 55 years.
BUILDING OFFICIAL CHRIS HELDRETH
- Asked if there is a time frame to purchased parcels 2, 3, and 4.
ASSISTANT CITY ATTORNEY NIKHIL DAMLE
- Stated they would be lock in for a limited period of time. - Stated the time frame was a 5 year period after commencement of construction on parcel one.
SPEAKERS
CARMEN HERNANDEZ, BARSTOW, CALIFORNIA
- Expressed concern with executing another long-term development agreement when they have not been successful for the City in the past.
- Asked for clarification that a lease is not executed if a grant is not awarded.
MIKE HERNANDEZ, BARSTOW, CALIFORNIA
- Asked if the affordable housing units would be gated particularly units with the senior population who need to be protected.
- Asked if the lease agreement is transferable to another party.
CONSULTING PLANNER REBECCA THORPE
- Stated the lease agreement can be transfer to another party with permission of the city and will be liable with the same agreements that had being made between the city and Milestone.
RESULT: APPROVED [UNANIMOUS]
MOVER: Paul Anthony Courtney, Mayor
SECONDER: Timothy Silva, Council Member
AYES: James M. Noble, Marilyn Dyer Kruse, Barbara Mae Rose, Paul Anthony Courtney, Timothy Silva